Fears about the recession dampening the nutritional supplement business have not been realized. Indeed, if anything, the market appears to have benefited from the economic uncertainty, since supplements stack up well against expensive prescription medications and possibly preventable medical procedures, especially as healthcare costs continue to soar. Accordingly, consumers are turning to supplements as a more affordable way to stay healthy, and even cash-strapped consumers used to taking supplements have been reluctant to eliminate them from their lifestyle regimens. At the same time, older Americans are significantly more likely to integrate supplements into their daily lives, and as the massive Baby Boomer population ages the supplement industry continues to widen its customer base. With these favorable winds at its back, the market has progressed steadily from 5.5% annual growth in 2007 to 6.5% in 2008 to 7.5% in 2009, bringing U.S. retail sales to $9.4 billion in 2009.
This fully updated Packaged Facts report examines the U.S. market for nutritional supplements sold to consumers through the full retail spectrum, including vitamins, minerals, herbals, homeopathics and combination products. The report provides extensive retail sales breakouts, past and future, along with a thorough examination of market drivers, the competitive situation, marketer and brand shares, marketing trends, and consumer trends. Special features include a discussion of competition from nutraceutical foods and beverages based in part on Packaged Facts’ own consumer polling, and in-depth coverage of condition-specific products in myriad segments including joint, calcium, children’s, eye, energy, heart, men’s, women’s, brain, digestive and cosmetic.
Using SymphonyIRI Group data, the report quantifies sales and marketer/brand shares across four categories (General Supplements, Multivitamins, 1 & 2 Letter Vitamins, and Liquid Vitamins), while Experian Simmons national survey data for 2010 form the basis of a thorough examination of product and brand penetration levels, while also exploring consumer attitudes toward nutritional supplements vis-à-vis related trends such as preventive healthcare and healthy eating. The report also quantifies new product introductions using data from Datamonitor’s Product Launch Analytics service, details trends in private label, and pinpoints key competitive thrusts among myriad market players.
Market Insights: A Selection From The Report
Walmart Draws the Most Supplement Shoppers
Walmart, the unavoidable behemoth of the consumer packaged goods retail landscape, practically exists as its own channel, and as such, more consumers buy their supplements from the Arkansas-based retailer than any other single channel. A Packaged Facts Internet survey conducted in May and June 2010 found that 63% of the 1,881 adults polled had taken nutritional supplements in the last 12 months, and of that group, 43% had purchased supplements at Walmart. Meanwhile, 18% of shoppers chose to purchase supplements at a warehouse store like Sam’s Club (owned by Walmart), Costco, or BJ’s Wholesale; while the other major mass merchandisers—Target, Meijer and Kmart—collectively attracted 17% of supplement shoppers.
Direct and Online Sales Enticing Supplement Sellers
According to Packaged Facts’ May/June 2010 online consumer poll, 26% of supplement users have purchased vitamin, mineral, or supplement products online in the last 12 months. And while only 4% of consumers bought supplements through the practitioner channel and 3% bought them from a multi-level marketing salesperson, the importance of these channels should not be overlooked. The combined nutrition industry direct-sales channels—which include Internet sales, catalog sales, TV-based sales, sales from multi-level marketers, and others—increased 7% per year on average during the 10-year period between 1999 and 2008, according to the Nutrition Business Journal. Because of the promise of a wider audience, direct-sales channels are looking enticing to nutritional supplement makers who sell through retail channels. These makers also often chafe at the limitations big-box retailers place on their businesses, such as pricing and distribution arrangements, in accepting and carrying their products.
Multivitamins Category a Two-Horse Race
The multivitamins category is pretty much a two-horse race in SymphonyIRI-tracked outlets, with Wyeth (Centrum) and Bayer (One-A-Day) continuing to run way out front. In years past, Wyeth had a comfortable lead over Bayer. But as of April 2008 that lead had dwindled to a few percentage points, with Wyeth at a 26.0% share of category sales ($185 million) and Bayer having climbed to a 22.4% share ($159 million), according to Packaged Facts’ 2008 edition of this report (which presented mid-year data). During full-year 2009, that lead narrowed even more, with Wyeth at a 25.0% market share ($194.3 million) and Bayer just one percentage point behind, at 24.0% ($186.4 million).
Wyeth’s Centrum lineup includes one double-digit market share product, Centrum Silver (13.9%), whose sales increased 9.5% during 2009. But none of its other major offerings did well in the year and most lost ground, including the Dora the Explorer version of Centrum Kids, which dropped 54.0%.
New York, August 30, 2010 — Whereas the world’s economic problems have hit many industries hard, the nutritional supplement business has proved resilient on the strength of spending by the aging Baby Boomer population and other health conscious consumer cohorts who favor supplements as an affordable way to stay healthy compared to costly prescription drugs and preventable medical procedures, according to Nutritional Supplements in the U.S., 4th Edition by market research publisher Packaged Facts.
“Part of the resiliency of nutritional supplements during this trying economic period stems from the fact that Americans are losing confidence in their ability to pay for healthcare, even as the economy shows signs of turning around,” says Don Montuori, publisher of Packaged Facts. “Compared to doctors visits, hospital stays, and prescription drugs, nutritional supplements can be a bargain.”
Packaged Facts estimates U.S. retail sales of nutritional supplements exceeded $9 billion in 2009, up 8% over 2008 sales. From 2005 to 2009, the market grew by a total of 26%, fueled by growing consumer awareness about health maintenance, in addition to pressure by the media and government to enforce product accountability.
This shift toward an increasingly health conscious attitude, along with the supplement industry’s move towards more science-based claims and various other efforts to shore up its credibility, will help push nutritional products further into the mainstream. Despite the weak economy, the prevailing needs of Boomers and seniors should also help to protect the market from any serious downturn. As a result, Packaged Facts forecasts annual sales growth in nutritional supplements will gradually improve over the new few years and sales will exceed $13 billion in 2014, yielding a compound annual growth rate of 7%.
Nutritional Supplements in the U.S., 4th Edition examines the U.S. market for nutritional supplements sold to consumers through the full retail spectrum, including vitamins, minerals, herbals, homeopathics and combination products. The report provides extensive retail sales breakouts, past and future, along with a thorough examination of market drivers, the competitive situation, marketer and brand shares, marketing trends, and consumer trends. Special features include a discussion of competition from nutraceutical foods and beverages based in part on Packaged Facts’ own consumer polling, and in-depth coverage of condition-specific products in myriad segments including joint, calcium, children’s, eye, energy, heart, men’s, women’s, brain, digestive and cosmetic.
About Packaged Facts - Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer goods and retailing, foods and beverages, demographics, pet products and services, and financial products. Packaged Facts also offers a full range of custom research services.
Tapping Into Format Opportunities
SupplySide West - October 2010
As the variety of food, beverage and nutraceutical options continues to grow, consumers are increasingly expecting more from all of their product choices. David Sprinkle, Packaged Facts, noted consumer preferences continue to evolve in selecting nutraceuticals and functional products, opening up opportunities for marketers and posing challenges for product developers. Sprinkle spoke briefly with Heather Granato, Virgo Publishing, in October 2010 during SupplySide West in Las Vegas, offering a historical perspective on the evolution and tips on what to expect in the coming years.
He detailed what could be considered the food and nutraceutical continuum, spanning from dietary supplements to functional foods to whole foods and even super foods. As the idea of supplementation has become increasingly central to people’s food choices, shoppers are willing to choose many types of products for their positive health effects. “Even though there is and could be an ideological battle between natural foods and whole foods and supplements, there’s really not in the minds of consumers," Sprinkle said. “Good things are good for you and more is more." Instead, he sees greater expectations among consumers that even packaged foods should offer some enhanced benefits, which could leave standard products on the shelves. As for what is on the horizon, he said functional foods may be able to gain additional market share from the supplement market as consumers are increasingly willing to buy in to a new dosage method for a health benefit.
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